Credit card is used to make purchases, transfer balance, and/or cash advances that allow you to pay back the loan amount in the future.  Most people use credit cards for regular purchases such as groceries, clothes, household items, fancy items, etc. Instances of credit card scams are growing rapidly. Clever credit card tricksters are experts in employing some technique or the other to defraud credit card users and scam them completely.

Application-procedure of the credit card:

The procedure for applying for a credit card is as described below:

• Choose a credit card from a bank based on your expected utilization and requirements because each bank offers a variety of options for the credit card.
• After choosing a credit card related to a bank that suits your needs, check your eligibility criteria for the credit card with the bank. Additionally, check with the bank about the documents that are compulsory to be submitted.
• Afterwards, the most crucial activity is to prepare all required documents needed for credit card application procedure.
• After you get the acceptance and approval for your credit card application, it is delivered to your residential address. Your signature may be necessary at the time of receiving. Then after that, you can proceed with your credit card activation. 

Credit-card management definition:

The practice of taking care of all aspects of credit card usage, such as your recent expenditure, credit card payment due date, rewards, interest rates, current balance, etc., is known as credit card management. It is necessary for all credit-card holders because this activity helps in taking care of the credit-card-relevant transactions and keeping a track record of all of them. This helps credit-card holders keep tight control of their credit card transactions and prevent them from getting lost. Credit card management is done effectively and efficiently depending on how the credit card holders handle their credit cards.

Handling credit cards:

To manage your credit card effectively, you must strictly follow the below-mentioned tasks.

• Keep control of your desire and be mindful of the things you buy with your credit card. Nothing is free of cost, you must remember that whatever you purchase with your credit card, you have to pay it back.
• Remember to always pay the amount mentioned in the credit card bill. If you pay little and neglect the remaining credit card debt, the interest is added later, and you will be in massive debt with your credit card. Please make credit card payments on time and avoid delaying the payments because the more you delay the credit card payment, the more interest you have to pay.
• Please make a habit of constantly checking your credit card expenditure. So if a fraudulent transaction occurs, you can notify your credit card service provider immediately.
• Credit card holders are fully responsible for managing their respective credit cards effectively. They must believe in their capability to protect their credit cards instead of depending on others.

Advantages of credit card usage:

Various advantages of using a credit card are mentioned below.

• With a credit card, you can purchase the things you want and then pay for your purchases later.
• There exists a record of all your expenses along with a detailed list of your expenses that is sent with your monthly credit statement with every credit-card transaction you perform.
• You can utilize the credit card to purchase items and services online, not only from domestic retail shops but also from retail shops that are located internationally.
• With a credit card, you can purchase without cash. You need to carry less money when you have a credit card. A credit card is useful when you make a purchase unexpectedly and suddenly. For example, A and B have gone to a mobile shop to buy their phones but need more cash. When they see their desired cell phones, they feel like purchasing them. At that time, they used their respective credit cards to buy their cell phones without cash.
• With the help of a credit card, you can easily and conveniently withdraw cash whenever you urgently require it.
• The most significant benefit of credit cards is that they are accepted as a mode of payment worldwide. Credit card payments are convenient and comfortable for credit card users if they are travelling worldwide.

Drawbacks:

Although credit cards come with ample of advantages, they do have some disadvantages as well.

• Charity-frauds:

In this fraud, the fraudsters pose as representatives of a charitable organization. They contact credit card holders regarding some donation for the sake of their fake charitable organization. Fraudsters tell the victims that they are seeking donations to support orphan children, people who have been victims of flood, etc. As fraudsters receive the amount from the victims, they disappear.

• Credit card frauds through public wi-fi:

In this type of fraud, when a credit card holder uses public wi-fi to make an online purchase their credit card details are accessed and hacked by the credit card scammer. Then the scammer uses the victim’s credit card for other fraudulent activities.

• Interest rate reduction credit card fraud:

In this scam, a credit card holder gets a call from the “firm” stating that they have some contacts with the credit card providers, which would provide them the benefit of negotiation of payments at a lower interest. The call may also convey that the time frame of this offer is limited so that the victims act quickly. As soon as the victim begins to act, the scammer may ask for credit-card information and the payment to be done directly for the so-called services.

Avoiding credit card scams:

Credit card scams are essential to avoid, and credit-card holders should take the below-mentioned steps.

• If you have any bill or document that has a record of your transaction done with your credit-card, please shred or destroy it so that the information is inaccessible by scammers.
• Remember to keep your respectively credit-card protected and safe from pick-pocketers or scammers.
• If you ever get a clue of your credit card being stolen, pickpocketed, or lost, you can immediately report it to the credit card provider and get the transactions blocked on it.
• While purchasing goods or services online, kindly ensure to use them properly and correctly.

Conclusion:

People utilizing credit cards must take great care of their credit cards, educate themselves and others about credit card scams, and take mandatory preventive measures to avoid credit card scams.